Whiplash plans to 'cut car insurance premiums by £40'

[grober]

Whiplash plans to 'cut car insurance premiums by £40' - BBC News

So whiplash plans to 'cut car insurance premiums by £40' or increase insurance companies profits? Maybe at least reduce these concerned cold callers who seem to think you've been in a car accident recently.

 

[Wheelsnuts]

I won't hold my breath!

 

[Lit91]

Oh nice, so they want to introduce a cap which is 75% lower in value than the average payout value and in return we can see a £40 reduction in the cost of our premium.

Seems like a great deal, for the insurance company only. :fail

 

[MancMike]

But not every person makes a whiplash claim. All our 40 quids add up to cover at extra 75%.

Also, whiplash isn't the only thing insurance companies pay out for. Did you expect a 75% reduction in your premium to match?

 

[markjay]

"According to the AA... the average annual motor insurance premium stood at £747 in 2014..."

I would say that if capping whiplash claims translates into £40(!) per policy..... that's ~5% - then the overall cost of these whiplash claims to the insurers must be massive.

 

[Lit91]

But not every person makes a whiplash claim. All our 40 quids add up to cover at extra 75%.

Also, whiplash isn't the only thing insurance companies pay out for. Did you expect a 75% reduction in your premium to match?

Put it that way, I'd rather keep paying what I'm paying and get the cover, rather than have a £40 reduction in my annual premium.

What is the next thing going to be, cap the pay out on car repairs to £1,000 and reduce the insurance by another £40..

Each to their own of course, but IMO it is clear who gets ripped off here.

 

[John]

I've always wondered whether this issue might be reduced if insurance companies paid direct for required treatment rather than just handing out cash to the 3rd party.

Sure, you would have some dodgy arrangements as with anything but would this work to some extent?

 

[davidjpowell]

^Seem's like a plan

Whiplash can be very real. I feel sorry for the few who really do suffer....

 

[Deleted member 113659]

Fingers crossed they start Capping insurance premiums too.

 

[markjay]

Whiplash injury is indeed very real but at the same it is also often exploited simply because it can be easily faked.

But unlike whiplash injury, the vast majority of other personal injuries readily submit themselves to medical examination and are therefore not easily exploited.

My understanding is that there is no plan to cap any injury that can be clearly identified by medical examination.

 

[nick mercedes]

Seems like a great deal, for the insurance company only.

Greedy insurance companies trying to feed off each other opened up the can of worms we have now.

Back in the day if you bumped someones car in traffic, cheerio NCD, quick trip to a local bodyshop for an easy repair.

Now it's £5k repair inc environmental charges, £300 a day hire car, £2k pretend whiplash injury, and a host of greedy middlemen all getting fat fees and all trying to stretch out a day repair into a 8 week £25k nightmare.